REIV response to the Housing Statement

Statement from Quentin Kilian, CEO, REIV

REIV welcomes - in principle - government efforts to ensure the long-term sustainability and growth of Victoria’s housing supply. The REIV applauds the focus on improving the availability and quality of social and affordable housing.

While today’s released Victoria’s Housing Statement – The Decade Ahead 2024-2034, addresses some of the longer-term supply challenges it falls well short of addressing the short to medium term reform that all Victorians are crying out for.

Today’s statement fails to articulate a plan for attracting and retaining existing residential real estate investors – the overwhelming majority of whom are average Victorians - to bring it to fruition.

Significant reform is needed to ensure more – not less – flexibility for Residential Rental Providers (RRP). Specifically, that means addressing several key components of the Housing Statement:

• Restrictions to rent increases between successive fixed-term leases. While certainty is important for both property owners and renters, this must be balanced with the ability for property owners to cover increasing costs such as land tax and interest rates.
• Restrictions on rent bidding by tenants. REIV welcomes this as an extension of legislation already in place. That said, it will be important for reform to allow Residential Rental Providers to adjust their pricing based on market conditions.
• Extending notice for rent increase 90 days. The seasonal fluctuation of market rates - must be considered with such a proposal. Regional towns may also be inadvertently impacted, given short-term itinerant workforce fluctuations.

REIV welcomes the government’s call for ongoing mandatory professional development for real estate agents. This requirement has been in place for REIV members for many years now.

And, while supportive in principle, we look forward to seeing more detail on the proposed portable rent bond and dispute resolution service.

The REIV will take every opportunity to engage with government to help define the detail of this plan.

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